Broken Window Fallacy
From Critiques Of Libertarianism
This fallacy does not let us distinguish between an arsonist destroying a building and an investor who demolished the building. In either caase something new would be put in its place, often much better.
- An important class of exceptions to the broken window fallacy.
- Frederic Bastiat's Broken Window Fallacy claims to show that claims of benefits to destruction are wrong. But there are plenty of reasons why there can be strong benefits to destruction: so strong that rational economic actors destroy things all the time.
- Bastiat's Broken Window Error [More...]
- The broken window analogy fails to explain real world examples, such as how Europe has become so much more prosperous after innumerable wars.
- The Real Problem with the Broken Window Fallacy [More...]
- "The BWF may or may not be useful for demonstrating a certain point, but it is not a model of the economy and it is not always and everywhere applicable to economic problems."
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